INSUBCONTINENT EXCLUSIVE:
Salil Parekh, Salil, Infosys CEO(Photo: Reuters)4 min read Last Updated : Jul 19 2024 | 9:42 AM IST
Shares of Infosys zoomed 4.76 per
US-listed American depositary receipts (ADRs) ended 8.38 per cent higher at $22.50 on the NYSE overnight, marking their largest single-day
gain in four years
This came after Infosys trumped street estimates in its financial performance for the first quarter of financial year
2024-25 (Q1FY25) while also giving higher growth guidance than expected for FY25.
The second biggest domestic information technology firm
registered a 7.1 per cent year-on-year (Y-o-Y) rise in net profit at Rs 6,368 crore for the quarter under review, which was above
However, sequentially, net profit dropped by 20.4 per cent.
Revenue from operations also grew by 3.6 per cent Y-o-Y to Rs 39,315 crore in
per cent for FY25, taking over the street's expectations of 1-3 per cent.
The surprise guidance for FY25 revenue was driven by three key
per cent, followed by lifesciences and manufacturing that grew by 3.3 per cent each with energy and utility and telecom also growing in the
offset by higher variable pay and leave costs, analysts said
During the quarter, Infosys signed 34 large deals with a total contract value
(TCV) of $4.1 billion, up 79 per cent Y-o-Y and down 8.9 per cent Q-o-Q
upbeat about the recovery in growth profile, though a bit guarded too, as discretionary spends remain largely on hold
firm Nomura also remained positive on Infosys and the IT sector, predicting that the earning per share (EPS) downgrade cycle is ending with
from growth leverage, value-based selling, automation, and role ratio improvement, which should help offset likely headwinds like salary
cent to factor in higher revenues and margins and its target price to Rs 1,950 valued at 27 times of FY26 EPS, from the earlier target of Rs
stock of the company was trading at 2.53 per cent higher at Rs 1,803.70 per share
